These are also expectations that some support measures will start yielding results in the next few years. In conclusion, the market for EVs and HEVs (and even PHEVs) is estimated to grow more significantly when more vehicles, charging infrastructures and new batteries become available.

Different types of initiatives support the introduction of EVs and HEVs in Italy: legislation, regulations, standards, promotions, and demonstrations. Most of these initiatives are the result of a growing interest by electric utilities in analyzing market prospects and the potential impact of EVs on the electricity grid.

There have been some ongoing and prospective legislative initiatives to support research and the introduction of EVs and HEVs involving several Ministries (Economic Development, Environment, Research, and Transport) and the Parliament. Some dedicated standards for HEVs and related components (e.g., rechargeable lithium battery applications and supercapacitors) also have been developed by the national standard-setting bodies as part of an international effort promoted by the International Organization for Standardization (ISO) and the International Electrochemical Commission (IEC).

Other measures indirectly support the use of EVs. The central government committed financial subsidies to support renewable energy plant installations, because of the strong commitment of Italy in reaching the overall European Union targets established for 2020 on energy efficiency, renewable energy share,and greenhouse gas (GHG) reduction.

Legislation

The efforts to promote and financially support the introduction of cleaner vehicles are continuing. Even if the direct incentives to purchase electric vehicles provided by Law n. 134 until 2015 were finished, other incentives for use and circulation were confirmed, like the exemption from the annual circulation tax (ownership tax) for a period of five years from the date of the first registration and after this five-year period electric vehicles benefit from a 75% reduction of the tax rate applied to equivalent petrol vehicles. Further, for the insurance tariffs, electric vehicles receive a discount from various insurance companies. Finally, in some big Municipalities electric vehicles have free parking in urban areas in any parking space and free circulation in limited circulation areas (ZTL zones). As an additional push to the diffusion of electric vehicles, against the still high vehicles price, the Ministry of Transport and Infrastructure has regulated the conversion (retrofit) of circulating conventional vehicles in electric vehicles, by a specific Legislative Decree issued in 2015 and become effective in 2016.

Regarding company fleets, the “Legge di stabilità 2016” introduced the super amortization as a fiscal detraction to purchase new instrumental vehicles and it was confirmed (even if at a lower rate) by the “Legge di stabilità 2017”.

Looking at the legislation on charging infrastructure, the updated version of the National Plan for Electric Charging Infrastructure (PNIRE) became effective, further the Legislative Decree for the reception of 2014/94/UE Directive, Directive Alternative Fuel Initiative (DAFI), was issued, and finally, the “Quadro Strategico Nazionale” was adopted: they all together define the national strategy for the widespread diffusion of electric vehicles charging infrastructure. In this strategy, some interesting arguments can be highlighted:

· a target of 4,500 ÷ 13,000 slow/accelerated charging points and more than 2,000 ÷ 6,000 fast charging stations on the national territory at 2020 is defined, giving priority to urban areas which belong to metropolitan cities and, successively, suburban areas, extra-urban roads, state roads and highways;

· the “technology neutral" approach is used as a total strategic vision, able to appreciate the contribution of each fuel type to realize environmental targets;

· it is established that new fuel stations – or the ones under renewal – must provide methane or natural gas and install charging stations for electric vehicles;

· it is established the constraint for Public Administrations to buy at least 25% of methane, natural gas or electric vehicles, when substituting their fleets;

· finally, until 31 December 2017 Municipalities must update their building regulations to meet the requirements of the provision on alternative fuels and, starting from 1 June 2017, new buildings or the ones under significant renovations must provide connections to install charging stations.

In 2016 the Ministry of Economic Development also adopted the National Plan for Hydrogen Refueling Infrastructure (“Piano Nazionale di Sviluppo – Mobilità Idrogeno Italia”), so far missing in Italy. The scenario predicts FC passenger cars to grow in number from 1,000 in 2020 to 27,000 in 2025, 290,000 in 2030, and FC buses to reach 3,660 in 2030 from an initial 100 in 2020 and 1,100 in 2025. This should be matched by the deployment of 440 strategically placed Hydrogen Refueling Stations (HRS) by 2030, starting from an initial 20 in 2020 and around 200 in 2025.

Regulation

The Italian Regulatory Authority for Electricity Gas and Water (AEEGSI) enacted a set of general rules for the services of transmission, dispatch, distribution, and electrical energy measurement for each EV charging point. These rules were applied in six pilot demonstration projects aimed at verifying business models and various EV and infrastructure technologies. On 31 December 2015 these pilot projects were completed and the experience was used to make some assessments in terms of models for electric vehicles charging services in public places: the detailed results should be published in 2017.

Correspondingly, electric vehicles charge was indicated by AEEGSI to be considered in the revision of domestic tariffs as one of the factors which change consumptions and power use: the Authority is studying the introduction of incentives/penalties to favor the renewal of condominiums for the period 2017 ÷ 2019.

Standardization

The increasing commitment and interest of the large industrial sector in EVs can be measured by the growth in standardization activities for various technologies: vehicles, lithium batteries, and charging stations. Different standardization bodies have been active in supporting international standard development, such as CUNA (Commissione Tecnica di Unificazione dell’Autoveicolo) for the vehicle and battery module and systems at ISO level, and the Italian Electrotechnical standardization body CEI for the battery cell and charging stations at CENELEC and IEC level.

Financial Initiatives

The international and national economic crisis impacted national clean vehicle initiatives more than those in regions, provinces, and many municipalities. These local governments were able to support clean vehicles through European, national, and industrial funding for projects supporting the environment and energy diversification. Major metropolitan areas (e.g., Rome, Milan, Turin, Genoa, and Florence) defined plans in which cleaner vehicles could play a significant role. The financial support for the purchase of EVs and the creation of dedicated charging infrastructures have been proposed in a variety of municipalities, often in conjunction with the definition of promotional and protective measures to limit or ban the circulation of more polluting vehicles.